GBP/USD consolidates below 1.6700

FXStreet (Edinburgh) - The demand for the sterling remains subdued on Thursday, confining the GBP/USD to a narrow range below the 1.6700 handle so far.

GBP/USD hurt by BoE

The sterling is still under the effects of the dovish tone struck by BoE’s Carney in yesterday’s Quarterly Inflation Report. As a consequence, spot breached the 1.6700 support to trade back in levels last seen in early April around 1.6690/80. “While the drop is in oversold territory, the down-move still appears incomplete. Expect another leg lower towards 1.6660 before a more significant rebound can be expected. Strong intraday resistant is at 1.6725”, observed Quek Ser Leang, Market Strategist at UOB Group. Next of relevance in the UK will be tomorrow’s advance GDP figures for the second quarter.

GBP/USD levels to watch

As of writing the pair is flat at 1.6690 with the next support at 1.6657 (low Aug.14) followed by 1.6605 (low Apr.8) and then 1.6600 (psychological level). On the flip side, a breakout of 1.6799 (10-d MA) would expose 1.6850 (high Aug.13).